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Yageo's three-month revenue decline has shown that MLCC market is not optimistic

SemiMediaEdit
December 10, 2018

Recently, Yageo announced that its consolidated revenue in November was 5.378 billion NT dollars, an increase of 64.6% year-on-year and a decrease of 14.8%. This is the third consecutive month of revenue decline, shows that the passive components market is not optimistic.

Yageo said that the reason for the November revenue decline compared to October was not only due to the impact of the off-season, but also because the trade war between China and the United States led to a decline in demand for customers in Greater China. At present, the company continues to adjust distributors' purchases to assist them in making reasonable inventory management and adjusting customer service models.

Earlier, the supply chain reported that due to the decline in terminal demand and other reasons, the Yageo Suzhou plant implemented capacity deployment, and the capacity utilization rate after deployment was only 50%. It is expected to further decline to 30% to 40% in December. Yageo subsequently issued an announcement on the rumors of production cuts, indicating that the plant was performing capacity and manpower deployment due to annual maintenance and changes in production schedules.

Yageo said that the current production capacity adjustment is mainly for the production of medium and large-sized high-capacitance products and automobile specifications MLCC. Although it is affected by the trade war, the trend of passive component industry structure is benign, and stresses that the global economic situation is tense, the subtle changes in the global market should be treated with caution.

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